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Tuesday, 19 January 10
COAL FOR DOMESTIC USERS
 While the government is already almost a year behind schedule in issuing regulations to implement the new mining law, mineral producers have been worried about the domestic market obligation (DMO) that the Energy and Mining Resources Ministry imposed through a ruling late last month.
Their concern is not so much about the requirement to allocate a portion of their output to domestic users, but the lack of clarity regarding how the volume of domestic needs for each mineral is set, how the obligation will be distributed among the producers and how the prices will be determined.
Mineral producers (other than oil and natural gas) are fully aware that they should fulfill domestic needs. That requirement is also by and large stipulated in their mining contracts. However, the DMO will create new uncertainty if this obligation is not based on clear-cut regulations.
Unfortunately, the Dec. 31, 2009 decree by the energy and mineral resources minister is mostly about repressive measures for companies failing to meet their DMO. It stipulates that producers who fail to realize their DMO are liable to a 50 percent cut of their output for the following year.
What is encouraging to note is that a similar penalty is also imposed on domestic users failing to take up their annual quota — their annual quota will also be cut by 50 percent. This enforcement is important because the volume of the DMO is based on the domestic market demand, which in turn is based on the annual needs of domestic industrial users each year.
The most affected by the DMO policy are certainly coal producers, who have made Indonesia the world’s largest seaborne exporter of thermal coal with an estimated output of 230 million tons last year, of which only about 50 million tons was used locally. However, the domestic demand for coal is estimated to almost double this year with the coming on stream of several power plants run by state electricity company PT PLN, all fired by coal. They are part of the government’s crash program to build 10,000 megawatts in additional capacity at PLN’s plants.
The government has strived to achieve the right balance between maximizing export revenues from coal and also securing supplies for domestic users. The challenge, though, is how to make producers accept domestic prices as fair compared what they get from exports.
Put another way, there should be an Indonesian coal reference price index that is acceptable to both producers and users, taking into account such factors as the coal’s calorific value, moisture content, etc. Such a reference price index is crucial because, unlike other minerals that have commodity exchanges of their own for price formation, coal doesn’t have any exchange of its own.
In the past, the domestic purchasing price of different grades of coal was often considered arbitrary, which acted as a disincentive for some producers to produce and sell higher-quality coal to PLN, the largest single domestic user.
Commercially, as long as the prices are right, producers will happily sell their output to the domestic market as this will cut the delivery time and freight costs.
The problem, though, is that the latest ministerial decree does not touch at all on a pricing mechanism for the implementation of the domestic market obligation, and this is creating a sense of uncertainty among producers.
Obviously the government needs to address this pricing issue immediately through another clear-cut regulation so as not to adversely affect new investment in the mining sector.
Source: Editorial, The Jakarta Post
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Friday, 22 January 10
JSW ENERGY TO INVEST RS 4,500 CRORE IN COAL MINES ABROAD
The Sajjan Jindal-promoted JSW Energy is planning an investment of Rs 4,500 crore (US$ 978,260,869) to acquire coal mines abroad and another of Rs 1 ...
Thursday, 21 January 10
HANDYMAX - SHORT PERIOD OWNERS IDEAS ARE AROUND MID/LOW 20S - FEARNLEYS AS
HANDY
The BSI moved in a downward direction since last Friday reflecting minor a ...
Thursday, 21 January 10
ASF GROUP TO COMMENCE COAL SALES TO CHINA BY FEBRUARY 2010
Sydney-based China energy and resource conduit, ASF Group has struck an agreement to supply coal to China.
In September 2009, ASF announced a ven ...
Thursday, 21 January 10
INDONESIA BUKIT ASAM AGREES ON LOWER COAL PRICE
Indonesian state coal miner PT Tambang Batubara Bukit Asam Tbk has agreed with a local power plant to set 2010 coal prices at 23 percent lower than ...
Thursday, 21 January 10
CABOTAGE POLICY POSTPONED
The Transportation Ministry has decided to postpone for one year the full enforcement of the cabotage principle – a maritime term for the proh ...
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- The State Trading Corporation of India Ltd
- Karbindo Abesyapradhi - Indoneisa
- Australian Commodity Traders Exchange
- Indo Tambangraya Megah - Indonesia
- Bangladesh Power Developement Board
- Savvy Resources Ltd - HongKong
- SN Aboitiz Power Inc, Philippines
- Medco Energi Mining Internasional
- Posco Energy - South Korea
- Global Coal Blending Company Limited - Australia
- GMR Energy Limited - India
- Interocean Group of Companies - India
- Kaltim Prima Coal - Indonesia
- Formosa Plastics Group - Taiwan
- Riau Bara Harum - Indonesia
- Metalloyd Limited - United Kingdom
- Straits Asia Resources Limited - Singapore
- Semirara Mining Corp, Philippines
- Global Business Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Electricity Regulatory Commission - India
- New Zealand Coal & Carbon
- CIMB Investment Bank - Malaysia
- Romanian Commodities Exchange
- Grasim Industreis Ltd - India
- London Commodity Brokers - England
- Indian Energy Exchange, India
- Marubeni Corporation - India
- ASAPP Information Group - India
- Petrochimia International Co. Ltd.- Taiwan
- Rio Tinto Coal - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Bharathi Cement Corporation - India
- Bulk Trading Sa - Switzerland
- Uttam Galva Steels Limited - India
- Maharashtra Electricity Regulatory Commission - India
- IEA Clean Coal Centre - UK
- Kohat Cement Company Ltd. - Pakistan
- Kartika Selabumi Mining - Indonesia
- OPG Power Generation Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- McConnell Dowell - Australia
- Agrawal Coal Company - India
- Bhatia International Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Xindia Steels Limited - India
- Antam Resourcindo - Indonesia
- Goldman Sachs - Singapore
- Sindya Power Generating Company Private Ltd
- GVK Power & Infra Limited - India
- MS Steel International - UAE
- Baramulti Group, Indonesia
- Price Waterhouse Coopers - Russia
- Holcim Trading Pte Ltd - Singapore
- Samtan Co., Ltd - South Korea
- Asmin Koalindo Tuhup - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- The Treasury - Australian Government
- Meralco Power Generation, Philippines
- GAC Shipping (India) Pvt Ltd
- Electricity Generating Authority of Thailand
- Neyveli Lignite Corporation Ltd, - India
- Pendopo Energi Batubara - Indonesia
- India Bulls Power Limited - India
- Trasteel International SA, Italy
- Tamil Nadu electricity Board
- Rashtriya Ispat Nigam Limited - India
- Bukit Baiduri Energy - Indonesia
- Thiess Contractors Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Manunggal Multi Energi - Indonesia
- Bhushan Steel Limited - India
- Deloitte Consulting - India
- Malabar Cements Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- The University of Queensland
- Kumho Petrochemical, South Korea
- Maheswari Brothers Coal Limited - India
- Coalindo Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Kapuas Tunggal Persada - Indonesia
- ICICI Bank Limited - India
- Australian Coal Association
- Heidelberg Cement - Germany
- Mjunction Services Limited - India
- Indika Energy - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Borneo Indobara - Indonesia
- Sree Jayajothi Cements Limited - India
- Electricity Authority, New Zealand
- IHS Mccloskey Coal Group - USA
- Orica Australia Pty. Ltd.
- Wood Mackenzie - Singapore
- Simpson Spence & Young - Indonesia
- Bukit Makmur.PT - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Gujarat Sidhee Cement - India
- Star Paper Mills Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Larsen & Toubro Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Vedanta Resources Plc - India
- Parliament of New Zealand
- Wilmar Investment Holdings
- Central Electricity Authority - India
- Sinarmas Energy and Mining - Indonesia
- Edison Trading Spa - Italy
- San Jose City I Power Corp, Philippines
- Aditya Birla Group - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ministry of Mines - Canada
- Iligan Light & Power Inc, Philippines
- Ind-Barath Power Infra Limited - India
- Toyota Tsusho Corporation, Japan
- Jaiprakash Power Ventures ltd
- Salva Resources Pvt Ltd - India
- Chamber of Mines of South Africa
- Ministry of Transport, Egypt
- Sical Logistics Limited - India
- Globalindo Alam Lestari - Indonesia
- Global Green Power PLC Corporation, Philippines
- Madhucon Powers Ltd - India
- Aboitiz Power Corporation - Philippines
- South Luzon Thermal Energy Corporation
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- White Energy Company Limited
- Timah Investasi Mineral - Indoneisa
- Anglo American - United Kingdom
- European Bulk Services B.V. - Netherlands
- Energy Development Corp, Philippines
- TeaM Sual Corporation - Philippines
- Mercuria Energy - Indonesia
- Indogreen Group - Indonesia
- Parry Sugars Refinery, India
- Singapore Mercantile Exchange
- Orica Mining Services - Indonesia
- Directorate Of Revenue Intelligence - India
- Petron Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Cement Manufacturers Association - India
- SMG Consultants - Indonesia
- Central Java Power - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Karaikal Port Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Meenaskhi Energy Private Limited - India
- Dalmia Cement Bharat India
- Planning Commission, India
- Kideco Jaya Agung - Indonesia
- Indonesian Coal Mining Association
- GN Power Mariveles Coal Plant, Philippines
- Tata Chemicals Ltd - India
- CNBM International Corporation - China
- PNOC Exploration Corporation - Philippines
- Merrill Lynch Commodities Europe
- Makarim & Taira - Indonesia
- VISA Power Limited - India
- Essar Steel Hazira Ltd - India
- Sojitz Corporation - Japan
- Standard Chartered Bank - UAE
- Eastern Coal Council - USA
- Georgia Ports Authority, United States
- Siam City Cement - Thailand
- Thai Mozambique Logistica
- Altura Mining Limited, Indonesia
- Indian Oil Corporation Limited
- Mercator Lines Limited - India
- Intertek Mineral Services - Indonesia
- Banpu Public Company Limited - Thailand
- Africa Commodities Group - South Africa
- Coastal Gujarat Power Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PowerSource Philippines DevCo
- Renaissance Capital - South Africa
- Semirara Mining and Power Corporation, Philippines
- Mintek Dendrill Indonesia
- Kepco SPC Power Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Energy Link Ltd, New Zealand
- PTC India Limited - India
- Videocon Industries ltd - India
- Ceylon Electricity Board - Sri Lanka
- Bayan Resources Tbk. - Indonesia
- Ambuja Cements Ltd - India
- Jindal Steel & Power Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Siam City Cement PLC, Thailand
- Billiton Holdings Pty Ltd - Australia
- Independent Power Producers Association of India
- Port Waratah Coal Services - Australia
- Oldendorff Carriers - Singapore
- Sakthi Sugars Limited - India
- Coal and Oil Company - UAE
- Vijayanagar Sugar Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Carbofer General Trading SA - India
- Sarangani Energy Corporation, Philippines
- Latin American Coal - Colombia
- Eastern Energy - Thailand
- Ministry of Finance - Indonesia
- SMC Global Power, Philippines
- Kobexindo Tractors - Indoneisa
- Binh Thuan Hamico - Vietnam
- Commonwealth Bank - Australia
- Lanco Infratech Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Attock Cement Pakistan Limited
- Alfred C Toepfer International GmbH - Germany
- Chettinad Cement Corporation Ltd - India
- Vizag Seaport Private Limited - India
- Therma Luzon, Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Economic Council, Georgia
- Minerals Council of Australia
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